Momentum Stock Watch: Third Point Reinsurance Ltd. (TPRE)

Company Profile:

Third Point Reinsurance Ltd., through its subsidiaries, provides specialty property and casualty reinsurance products to insurance and reinsurance companies worldwide. It underwrites homeowners’ and commercial, workers’ compensation, personal automobile, mortgage, and multi-line reinsurance products; professional, transactional, and general liability reinsurance products; and marine, travel, and extended warranty reinsurance products. The company was incorporated in 2011 and is based in Pembroke, Bermuda.

Recent News:

On, April 11, 2019, the company announced two appointments to its Specialty Treaty division. Rachael Afford and Melanie Lopes have joined as Vice President and Underwriter respectively. Both report to Tracey Gibbons, head of Specialty Reinsurance.

Third Point Re reported a net loss available to common shareholders of $298.0 million, or $3.24 per diluted common share, for the three months ended December 31, 2018, compared to net income available to common shareholders of $44.3 million, or $0.42 per diluted common share, for the three months ended December 31, 2017.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

TPRE’s strengths can be seen in its strong growth and robust profitability compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in MACD and Stochastic oscillator. The RSI stands at 55.33 with positive bias. We rate Third Point Reinsurance Ltd. (TPRE) a STRONG BUY.